Ex-Scangroup CEO Bharat Thakrar files suit against WPP, citing unfair treatment

Former Scangroup CEO Bharat Thakrar has embarked on legal proceedings against WPP, the UK-based parent company of Scangroup, citing what he alleges as "neo-colonialist practices and discriminatory tactics" leading to his ousting from the corporation he founded in 2021.

In a recent development reported by a section of UK-based media, Thakrar claims that WPP engaged in discriminatory actions against him and Scangroup’s finance chief, Satya Das, specifically targeting business executives of Indian origin.

Such actions, Thakrar argues, contravene Kenyan laws that prohibit any form of segregation.

Thakrar's legal representatives, in a demand letter, also accuse WPP of leaking details of an internal investigation into alleged financial and personal misconduct to Kenyan media, resulting in reputational harm.

The letter explicitly states, “The disciplinary proceedings were in any event discriminatory and amounted to neo-colonialist practices as they were clearly targeted only at our client who is of Indian extraction.”

Moreover, Thakrar's legal team highlights WPP's preferential treatment of a British national in a high-ranking position at Scangroup, who was reportedly involved in the allegations against Thakrar but was subsequently promoted to CFO of one of WPP’s largest subsidiaries.

The reported damages Thakrar seeks in the lawsuit amount to approximately £24 million (Sh4.3 billion), with proceedings expected to commence within weeks.

Although Thakrar has confirmed his intention to pursue legal action, he has refrained from commenting on the specifics of the case at this time.

Thakrar's association with Scangroup dates back to its inception in 1982, evolving from a startup into a publicly listed company in 2006. His significant stake in the company positioned him as a key shareholder until WPP acquired a controlling interest in 2013.

Thakrar's public suspension in February 2021 marked a significant turn of events, as he became the first CEO of an NSE-listed company to face such actions for alleged ethical misconduct.

However, subsequent investigations cleared him of any wrongdoing regarding the firm's financial performance.

Despite relinquishing much of his ownership stake, Thakrar maintains dissatisfaction with WPP's influence over Scangroup's board decisions and alleges manipulation leading to his resignation.

In light of recent challenges, including a profit warning issued in November last year and subsequent restructuring efforts, Scangroup reported a net profit in 2022, rebounding from a loss in the previous year.

However, uncertainties persist regarding the company's financial outlook amid ongoing legal proceedings and organizational changes.